Steemit Crypto Academy Season 2, Week 1 || Assignment on Decentralized and Centralized system , Advantages & Disadvantages and which one is best for business?
Thank you professor @yousafharoonkhan for your teaching. I am writing this post to answer the questions you ask us after your class.
ANSWER TO QUESTION ONE
Decentralization is a type of system where each person or node can make their own decisions by themselves. In decentralized each system have their own power to make decisions they are not depending on any other node.
Centralization is a type of connect where all the system are connected to a central node. The decision and authorization is dependent on the central node.
ANSWER TO QUESTION TWO
In decentralized system users are in control of their funds, you can run your business without identify yourself while in centralized the user have to identify themselves and need permission from higher authority before the user can enter the system.
Another comparison is that decentralization is very strong, secure and more reliable than centralized. Decentralized system is own by individual not a single entity or company unlike centralized system that is own and can the operator can be a single entity or company.
Scaleabilty and realability is high in decentralized but low in centralized. When it come to liquidity also, this is high in centralized system but low in decentralized system.
It is very easy for powerful and influencial people that have access to the main server of the centralized system to edit data but it is not easy to do that in decentralized system because the data is stored on many servers in difference locations and are connected together through the blockchain.
ANSWER TO QUESTION THREE
Decentralized Advantage
Some of the advantages are
This is the safest system that you keep your funds
Information stored on the decentralized block chain cannot be easily edited by hacker because this information are store on each user system except in a situation whereby the user release is private keys unknown to the hacker.
It also help to increase the relationship between the users on decentralized blockchain.
Government cannot meddle with decentralized Blockchain and this is a big advantage too.
The transaction speed is increased in decentralized Blockchain.
Decentralized Disadvantage
Volalitity problem is one of the disadvantage because cryptocurrencies that use decentralized Blockchain are usually extremely volalite.
The user can mishandle their private keys which cause them to loose their funds.
Decentralization is very costly when compare with centralization in any organization.
Last of maintenance of this decentralized platform in an organization can lead to conflict.
It is very difficult to fix bugs or error in decentralized application.
Centralized Advantage
The problem of transfering funds to the wrong person is eliminate in a centralized Blockchain.
Another advantage of centralized in any organization is that the command line is defined, everybody know the command line; that is the person they should report to and their own roles and responsibilities.
The cost of centralized network or infrastructure is reduce.
It help to implement decision in a faster way.
And the fiveth advantage I will like to make mention is the fact that there is regulations and stability in price when dealing with centralized system.
Centralized Disadvantage
The Disadvantages are
Scalability in centralized system is low.
If failure occur in the single central point in the centralized network it will affect all other system connected to it.
The price can easily be manipulated.
The centralized network is pron to cyber attack because when the central node is attack and it fails, other are affected too.
The fiveth disadvantage is that data modifications is very hard; changing data that have been add to the centralized Blockchain is very demanding.
ANSWER TO QUESTION FOUR
From our class we were thought that the nature of business/trading that you want to do will determine which of the system decentralized or centralized will be ok to use. Both the two decentralized and centralized are good for business but the question is what is the nature, and the time frame of the business, this will help in determine the best during select.
Personally I prefer decentralized which come into existence in other to improve on centralized system.
ANSWER TO QUESTION FIVE
Following the step that we were taught
Stage one
Open any browser of your choice and type this https://etherscan.io/ URL in the search bar.
The etherscan.io page will open
Stage two
Then I will paste the contact address of the company I want to check on the filter bar then click on search
Using the same address given in our class then click on search
Stage three
When I click on search it lead me to the next page.
The next thing is to click on contract. Which will show me the coding section
And according to what our professor taught us if we do not see any word like function destruct, administration,self destruct then in the coding then it mean that the system is centralized otherwise it is decentralized.
This is the end of my assignment, thank you for reading
First respected student Thank you very much for taking participate in Steemit Crypto Academy Season 2, Week 1 course class..
if you open the above line to explore the reason of selecting this system that will give more good point
you explained every question in your words, but i want to know that which system is the best and why, so you did not explain this area in detail, 2nd in last question , i gave practical task to student that they will search own contract address then will describe the method, but you used my given contract address
Thank you very much for taking participate in the class
Ratting :6